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A Look Into Buying Pre-construction As A First Time Buyer - Whether You Are An End User Or Investor

Renderings And Photos Of A Project - Especially With A Lot Of Hype Can Feel Over Whelming And You Can Feel The FOMO (Fear Of Missing Out).

1. Invest In A Builder FIRST Before You Invest In A Building.

Does This Builder Complete Their Buildings, What Is Their Track Record Like, What Buildings Have They Built Already (How Are Those Doing?)

2. In Condominium Purchases You Have A 10 Day “Cooling Off” Period - This Is An Advantage You Just Don’t Have When It Comes To Resale.

This Period Gives You Time To Have Your Lawyer Review The Agreement Of Purchase And Sale With The Builder But Locks In Your Spot With Price/Incentives For The 10 Days.

3. There Are TWO Closing Dates When It Comes To Pre-construction

Interim Occupancy Is When You Get Keys To Your Unit However You Don’t “Own” Your Condo Just Yet. There Are Fees Associated With This Period Of Time Between Interim And Final Closing. You Will Pay The Builder A Fee To Occupy The Unit Also Referred To As Phantom Rent (AKA Rent)

Final Closing Is When The Builder Registers The Condo Corporation With The City. This Is When Your Mortgage Payments Start And You Receive Title For Your Unit.

4. Closing Costs Are Something You Probably Haven’t Heard Too Much About Or If You Had They Weren’t Great.

Development Fees And Levies Get Determined When A Property Is Developed. The City Determines The Impact On The Neighbourhood That The Building Will Bring. As A Result They Will Charge The Builder A Per-Unit Price - This Amount Will Go Towards Local Infrastructure (Streets, Parks, Schools, Future Transit Solutions)

And Guess What - If Your Closing Costs Are Not Capped This Amount Will Be Placed On You From The Builder. Imagine That Cost Being An Additional 25K-50K.

Overall, Like ANY Real Estate Investment - Holding Long Term Is The Way To Gain The Most Amount Of Wealth Off This Expensive Asset.

Want To Know More About What Your Condo Should Include Or About Incentives For The Saw Whet - Send Me A Message And Let's Chat!

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